February 27, 2020 / 4:20 AM / a month ago

Indian shares fall for 5th day as pandemic fears unnerve investors

BENGALURU, Feb 27 (Reuters) - Indian shares fell for a fifth straight session on Thursday as investors shunned riskier assets on fears that the coronavirus outbreak is fast developing into a pandemic.

The broader NSE Nifty 50 index fell 0.5% to 11,622 by 0400 GMT and the benchmark S&P BSE Sensex declined 0.34% to 39,753. Both the indexes have shed more than 3.5% so far this week.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.5%.

Most new virus cases are now being reported outside China - the origin of the outbreak - with South Korea, Italy and Iran emerging as new epicentres. U.S. officials on Wednesday warned Americans to prepare for more virus cases.

Rising fears of a pandemic had already wiped more than $3.6 trillion from global stock markets by Wednesday’s close. “There are signs that the coronavirus is having an impact on the Indian economy. The market has corrected already and we still expect it to remain down,” said A.K. Prabhakar, head of research at IDBI Capital.

Vistara Airlines on Wednesday said it would make temporary reduction in some flights due to the virus outbreak.

With the expiry of futures and options due on Thursday, most investors will try to exit their positions, Prabhakar added.

Almost all Nifty sub-indexes were trading in the red, with the Nifty IT index leading the losses, down 1.1%.

Biocon shares fell 2.1% after the company said it received two observations from the U.S. Food and Drug Administration for its API facility.

Cipla Ltd was the biggest laggard in the Nifty 50 index with a drop of 2.5%, while Yes Bank was the leading gainer, rising 1.9%.

“We would downgrade the market status to a downtrend if it breaches 11,614,” William O’Neil India analysts said in a note. (Reporting by Nallur Sethuraman; Editing by Subhranshu Sahu)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below